HB254 Alabama 2019 Session

Summary

Primary Sponsor

Margie WilcoxRepresentative

Republican

Session

Regular Session 2019

Title

Toll roads and bridges, Toll Road, Bridge and Tunnel Authority, state and local tax exemptions further provided, Secs. 23-2-142, 23-2-153 am'd.

Summary

HB 254 would expand and clarify state and local tax exemptions for the Alabama Toll Road, Bridge, and Tunnel Authority and its toll projects, including construction costs, materials, and related revenues.

What This Bill Does

It broadens exemptions from state and local taxes for toll projects and property used by the Authority, the Department of Transportation, and users. It specifies that corporate activities of the Authority and its revenues are exempt from taxes, but does not exempt individuals or contractors from state income taxes. It authorizes the Department of Revenue to issue exemption certificates for projects and requires cost accounting and reporting by users and contractors, with potential audits for improper exemptions. It also removes several tax burdens by exempting sales and use taxes on project-related materials and services, and it takes effect immediately after the governor signs it into law.

Who It Affects

• The Alabama Toll Road, Bridge, and Tunnel Authority – gains broader tax exemptions for its projects and revenues and will interact with the Department of Revenue to obtain exemption certificates.
• The Alabama Department of Transportation – included in the exemptions and cost accounting framework; may engage with the Authority and users under the new rules.
• Contractors, subcontractors, suppliers, and users involved in toll project work – may claim exemption from certain sales and use taxes for project-related purchases, but must maintain cost accounting and report exempt purchases; risk of state taxes if exemptions are improperly used.
• Local governments and taxpayers in Alabama – affected by exemptions from local taxes on project-related transactions and by the potential shift in local tax collections related to these projects.

Key Provisions

• Expands and clarifies exemptions from state and local taxes and assessments for toll road, bridge, and tunnel projects and property acquired or used by the Authority, the Department, or users.
• Exempts corporate activities, income, and revenues of the Authority and the Department from taxes, but explicitly does not exempt individuals, users, or contractors from state income taxes.
• No ad valorem taxes or assessments on toll projects while title is held by the Authority or Department, or under lease to a user; no privilege or license taxes on related recording or conveyance documents.
• Sales and use tax exemptions for the gross proceeds from the sale of nonconsumable and consumable materials and related services used in toll projects, including local sales/use taxes; separate treatment for consumable vs nonconsumable materials.
• Interest on bonds, notes, and other obligations issued by the Authority is exempt from taxation; exemptions apply to related financing.
• The Department of Revenue will issue exemption certificates to the Authority, the Department, and each user and contractor (with separate certificates for consumable vs nonconsumable materials); requires cost accounting and reporting of exempt purchases, with enforcement provisions for improper exemptions.
• Defines the broad cost components of toll projects, including construction, land, demotion/removal of structures, financing, studies, planning, and related expenses, and provides for reimbursements to the Department of Transportation for certain planning/engineering costs.
• The act becomes effective immediately following the Governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Toll Roads and Bridges